Companies welcome revenue growth, but no plans to hire more workers

Canberra Times
January 30 2018

Private companies in Australia and around the world expect to maintain or shed staff numbers in the next 12 months despite being optimistic about their future expansion and revenue growth, a new Deloitte survey has found.   

The Deloitte report Global perspectives for private companies to be released on Wednesday surveyed 1882 companies around the world with revenues of between $10 million to $1 billion.

It found that about two thirds of global companies viewed digital disruption as a positive change.

More than half of only 55 Australian companies surveyed did not plan to employ more people despite many planning to expand or increase productivity. Of the 55, seven companies planned to shed staff numbers.   

Deloitte Private Chief Strategy Officer Michael Clarke said this suggested that companies would manage growth opportunities through automation and technology "rather than hiring".

"The Australian private market understands that automation doesn't replace jobs, it improves the quality of them," he said.

"Business leaders are taking advantage of automation, cloud and analytics to maximise their resources, but also recognising the importance of holding onto engaged and highly skilled employees to carry out higher value work."

Professor John Buchanan, head of business analytics at the University of Sydney Business School, said the Deloitte survey was based on very small survey samples of about 50 respondents from each country, despite the significantly varied sizes of their populations.

Around two thirds of the private companies surveyed across the world reported that disruption arising from technological change would be positive.

Professor Buchanan said the view of companies did not reflect the view of workers.

"What is perceived to be good by companies is not shared by the entire population," he said.

The Deloitte survey found that roughly two thirds of the executives from each region were optimistic about the success of their company over the next 24 months.

The majority expected their revenues, profits, productivity and capital investments to go up in the year ahead.

Fewer than half (45 per cent) expected to hire more full time employees.   

The survey said private companies may be looking at developing more flexible or augmented workforces.

"If increased investments in technology like cloud and analytics are paying off, the outcome of this is companies managing growth by automating processes and augmenting their workforce with technology," the report said.

Deloitte Private partner Tara Hill said Asia was opening up to private companies and many had already expanded into Singapore, Hong Kong and China.

"As confidence and experience increase we are seeing more Australian companies look to other areas of Asia, such as Malaysia and Indonesia as new growth markets," she said.

Jobs and growth?.  No, smoke screens and mirrors.   

Origin Energy slashes 650 jobs in Queensland   

30 January 2018  Business News Australia

Origin Energy will slash more than a third of its 1,600 jobs in Queensland with most of the cuts to affect its Brisbane head office.   


Staff at the Brisbane-based oil and gas producer and energy retailer were informed by email this morning that around 650 jobs will be cut this year with 500 workers to lose their jobs as early as April.   

The massive cull follows Origin's $1.6 billion sale of its conventional oil and gas arm, Lattice Energy, to Beach in a transaction that is expected to be completed by Wednesday.

It also follows the completion of the ramp-up of production at the new $25 billion Australia Pacific LNG project in Queensland, now the dominant asset in the division after the sale of Lattice Energy.

A company statement says the restructure will result in an increased focus on jobs at operational plant sites with a strong presence in regional communities.

"The loss of jobs is never a decision taken lightly and we are putting considerable effort into completing this process as quickly as we can so we can provide certainty to our people," CEO Frank Calabria says.

"We firmly believe these changes are both necessary and sustainable, in the best interests of Origin and our project partners, and put us in a strong position to achieve our objective of becoming a globally competitive, low cost gas producer."

Origin also says the job cuts were part of its plan to slash costs and protect against swings in commodity prices.

Origin sacked about 800 workers in 2015 when oil and gas prices collapsed, and late last year the company said it would cut more than half a billion dollars in annual costs.

Origin Energy has been through a tough couple of years, marked by weaker oil prices and a third consecutive year of big losses with the 2017 net profit loss of $2.22 billion.

Its cumulative losses since 2015 is $3.8 billion, and since 2014 Origin's share price has been halved, which is roughly in line with the reduction in oil price.

Seems a lot of them can't even pay the minimum wage.   

If you don't ask what the wages are how do you know what you will be paid?.   

aquascoot wrote on Jan 31^st, 2018 at 11:12am:


Does one do this whilst one's tongue is down the back of his trousers, or after?

greggerypeccary wrote on Jan 31^st, 2018 at 11:16am:



On this occasion I forgive your strikethroughs.... but this is not be viewed as a precedent.....